WHAT’S BEING CLAIMED:
- According to The Wall Street Journal, Amazon is getting ready to start its own delivery service for its retail business.
- UPS has been handling most of Amazon Prime deliveries from third-party sellers.
- But handling deliveries themselves can shorten delivery time and encourage more people to be Prime members.
Online retail giant Amazon is gearing up for its next venture, its own delivery service.
The service is called, “Shipping with Amazon.” Initially, it will pick up packages from its own third-party sellers and deliver them to shoppers.
Operations are reportedly scheduled to start in the coming weeks in Los Angeles and hopefully, expand from there. Reports of the upcoming business sent FedEx and UPS shares to drop in Friday’s early trading.
Amazon’s delivery service would compete directly with UPS, FedEx and even with the U.S. Postal Service.
Its long-term relationship with UPS is not likely to break instantly, but eventually, it will cool off.
Amazon officials told Fortune, “We’re always innovating and experimenting on behalf of customers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices.”
The company has been shipping items from its own warehouses but issues about Prime membership arise when customers order from third-party sellers.
The new venture will likely increase Amazon Prime membership because it can track deliveries on its own and avoid problems when customers say they never received what they ordered.
CEO and founder Jeff Bezos wants the company to be involved in all facets of the sales process. “By bringing delivery in-house for third-party partners, it doesn’t have to worry about partner service interruptions and how packages are handled.”
The retail company had big losses on shipping last year when its expenses reached nearly $20 billion. It will definitely control shipping costs by having in-house delivery service.
Amazon can eventually expand its shipping business and not just cater to its shoppers. There’s money in the shipping industry. Take, for example, UPS, which reported revenues of $18.83 billion from the latest quarter.
Source: Fortune
3 comments
Amazon and the internet will be the end of this country and people are too dumb to see it , stores closing , more jobs will be lost and why ? People are too lazy to go out and support the ones who support them , the jerkoff from amazon is the only guy making any money , hes the richest guy in the world and at all of our expenses …. mark my words
The Giants we build today will be our masters tomorrow
Mark my words: Get on board with today’s faster and faster moving technology; grasp it, learn it, and LOVE it or get left behind! Believe me- the only lazy people out there are those try it to fight learning new ways and accepting change, because change will ALWAYS be while e are still left to live on this planet. Progress and innovation continues to move business & humanity forward. Different and better paying jobs are being created in the Retail sector and in the Energy sector and in the Business sector etc. replacing those “jobs” that you are so worried about going away. There is no such thing as “Clean” coal or “Clean” diesel. Those who believed that Trump would bring those jobs back have fallen for one of his many cons. The future is in wind power, solar power, possibly even safe nuclear power but all will have to be clean- that’s why the EPA is so important. Haven’t you seen how the crowded cities in Asia have constant gray, smoggy air where the sun is rarely seen. Yet they walk around with surgical masks on….that’s what happens when there is no environmental controls. Jeff Bezos and others are championing clean air ways of proceeding in business. He doesn’t just sit on his incredibly wealthy ass; neither does Gates. But fat, lazy, and lying-ass Trump sure does whenever possible!